Al Majdiah Signs Framework Deal for Makkah Development Project

Dar Al Majdiah Real Estate Co. signed a framework agreement on June 24 for the development of the Eastern Hindawiyah project in Makkah. The deal was struck with the company's consortium partner, though no financial terms were disclosed.

The agreement sets the terms under which the consortium will proceed with the project, which involves land development in the eastern section of the Hindawiyah district. The site sits within Makkah's expanding urban boundary, an area where the municipality has been pushing new residential and mixed-use zones to accommodate growing demand from pilgrims and residents.

For Al Majdiah, the framework deal locks in a development role on a project that could span multiple phases. The company has not said how much it will invest or what its share of the revenue will be. Those details typically come when the consortium finalises a full development agreement, which the framework is designed to lead toward.

Makkah real estate has been a focus for Saudi developers as the government pushes to expand housing stock and hotel capacity ahead of the 2030 Hajj target of 30 million pilgrims annually. The Hindawiyah area, close to the Grand Mosque's outer ring roads, has attracted several large-scale projects in recent years.

Al Majdiah shares traded flat on the Saudi Exchange on Monday. The stock is down about 12% year to date.